5 Ways You Can Grow Rich with Less Income

Table of Content

1. Check out 5 different strategies that you can use to grow rich — even with a low income.

2. Conclusion

In this policy, the investment risks in the investment portfolio is borne by the policyholder

There is a common misconception among people that in order to create wealth and grow rich, you need to earn a six-figure income. While there’s no denying that it can definitely accelerate your journey to riches if you have a high income, all is not lost for people in the early or mid stages of their careers.

Even if you are earning only a few thousand rupees each month, you can achieve your financial goal of wealth creation with the right strategies. What’s more, there’s not just one way to do this.

Check out 5 different strategies that you can use to grow rich — even with a low income.

There's no one-size-fits-all approach to growing rich even on a low income. To achieve your long-term goal of improving your financial stability and creating wealth, you can choose from different actionable strategies. Some such strategies are outlined below.

• Have a Strict Budget
  A budget is the building block for any kind of financial success. If you want to grow rich on a limited income, you need to know how to put that income to the best use possible. And here’s where a budget is crucial. It helps you track how each rupee you earn is being spent.
• Cut Discretionary Spends
  As an add-on to creating and sticking to your budget, you must also make efforts to cut discretionary spends. This will help you save more of your limited income and put you on the path to wealth creation.
• Invest Small Sums Regularly
  Budgeting and cutting unnecessary expenses can increase your savings. But your savings can only transform into wealth if you invest your money. You can start off by making small but consistent investments in assets that have the potential to generate above-average returns and set off these investments with stable options like deposits.
• Avoid Taking on High-Interest Debts
  No matter how much you save and invest, if you have too much debt, your financial situation may eventually worsen. This is particularly true for high-interest debts like credit card liabilities and personal loans. A better alternative to these avenues is to build an emergency fund that can prevent you from resorting to debt in case of any contingency, so your income is free to be invested instead.
• Include ULIPs in Your Portfolio
  With a ULIP investment, you get a life cover as well as the opportunity to create wealth with customisable market-linked investments. By investing small sums on a regular basis in the best ULIP plan of your choice, you can add a choice of funds to your portfolio, like equity funds, debt funds and hybrid funds.
  The HDFC Life Smart Protect Plan is one such Unit Linked Insurance Plan that caters to your long-term goal of financial security. One of the best ULIP plans for anyone chasing the goal of protection cover and the need for long-term wealth creation; it allows you to pay your premiums on a Monthly, Quarterly, Half-Yearly, Annual basis and continue to invest in your preferred ULIP funds over the entire policy term. This plan also allows you to choice of 5 fund options with unlimited free switching of funds (available under Level Cover and Decreasing Cover options).

Conclusion

The strategies outlined above can help you get closer to your ultimate goal of wealth creation. You need not implement them all simultaneously. You could start by creating a budget and once you diligently save up for 3 months or so, you can start investing in a ULIP at periodic intervals.  

This will help you put your savings to good use and make it easier to achieve your goals, even if you are earning a comparatively lower income than your peers.

Related Article:

• Understanding ULIP Insurance: A Comprehensive Guide for Beginners
• Investing in ULIP Plans - Things You Must Know
• Confused between Sum Assured and Fund Value in ULIPs? Know them at your fingertips
• 14 Best Investment Options In India
• What is FIRE Method and How Does it Work?
• Life Insurance Saving Schemes by HDFC Life

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